03-11-2015, 11:40 PM | #1 |
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Euro Exchange rate - price cuts?
Any bets as to whether BMW cuts any prices with the forecast USD-Euro exchange rates? Some are forecasting as low as $.85 to the Euro this summer, currently it is barely over par and dropping. That is a 40% drop in a year.
My bet is BMW takes the profit and smiles all the way to the bank. Of course the flip side is BMW is going to get screwed exporting X-cars from here to Europe. I bet they raise prices on those over there though. Luckily my job does not depend on exports of anything from the US. When I did ED in 2011, it was ~$1.45 to the Euro, which completely and utterly sucked. That made gas up to $12/gal, and food and hotel rooms ridiculous. This time Europe will be on sale! I may send the European Central Bank a Christmas card for saving me a small fortune on my month long European Delivery trip in August/Sept.
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'11 328! Touring - Tasman on Chestnut, 6spd manual, factory upside-down "i" option '11 128i Convertible - Space Gray on Savannah Beige, 6spd manual, also '14 Mercedes-Benz E350 wagon, '95 Land Rover Discovery, '74 Triumph Spitfire |
03-12-2015, 10:40 AM | #4 |
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03-12-2015, 11:53 AM | #5 |
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Currencies fluctuate all the time, and there have been 'strong dollar' periods before. I don't recall BMW ever explicitly cutting U.S. prices as a result of currency fluctuations.
The strong dollar/weak Euro does, however, make it less likely that there will be price increases for 2016. It's also possible that there could be a stealth price-cut in the form of more standard equipment. Perhaps that's unlikely, however, in light of the aforementioned declining margins. |
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